Global Ad Revs Expected To Hit $516B In 2014

Posted on 2014-06-16 by P.J. Bednarski

Global advertising revenues are still on pace to pull in their best results in four years -- thanks to generally stronger economic growth, Winter Olympics, soccer’s World Cup and U.S. mid-term elections.

Magna Global, the strategic media unit of IPG Mediabrands, forecasts that worldwide media owners will spike up 6.4% this year in advertising revenue to $516 billion -- up from a 4.2% hike in 2013 and an 8.4% increase in 2010.

The U.S. will contribute much to the higher numbers, with advertising revenues up 6.0% this year to $168 billion -- versus a 2.4% gain a year ago. Magna cites a better economy, as well as global sports events, the 2014 midterm election cycle and the start of Affordable Care Act as reasons for the hike.

China, now the the second-largest advertising market in the world, will gain 12% to $51 billion of advertising spend this year; Japan is the next-largest, with a 1.3% hike to $43.5 billion. Of the $31 billion of additional worldwide advertising spending in 2014, almost 60% ($10 billion) will come from North America and emerging Asia regions -- $8.5 billion.

Television remains the lead media category -- up 7.2% to $207 billion, for a 40.2% market share. Digital spend will again get double-digit percentage gains, nearly 16% to $140 billion, getting 27% market share globally. Global social media will see a 50.1% increase to $14 billion. Search will be up 17.6% to $71 billion, while digital video is forecast at 30.6% higher to $11 billion. Mobile media will grow 61% to $27.1 billion this year.

Programmatic buying for display, social and video campaigns will reach $18.4 billion -- $9.8 billion from the U.S. alone. This includes real-time bidding and other automated transactions.

Apart from TV, traditional media will only eke out small gains at best -- out-of-home up 4.3% to $31 billion; cinema advertising gaining 1.9% to $3 billion; and radio adding 1.8% to $33 billion. Losing ground are newspapers, down 3.2% to $73 billion, and magazines, down 4.9% to $29 billion.

Magna projects that global advertising spending will grow more modestly in 2015 -- up 4.9% to $541 billion.